Essence Drinks: Innovation and Commercialization Strategy Report

This report examines the business case for Essence Drinks, focusing on its background and the need for innovation to address declining sales in the UK market. It details the importance of the commercial funnel in introducing new products, outlines the stages of the funnel, and emphasizes the significance of risk assessment. The report explores value creation through frugal innovation, summarizes a new product idea for Essence Drinks (new lassi flavors), and details techniques for testing product effectiveness, including customer interactions, sample offerings, test advertisements, and surveys. It also identifies the resources required for innovation, such as funding and human resources, and highlights the importance of intellectual property rights, including trademarks and patents, to protect the company's innovations. The report concludes that Essence Drinks requires new product development to secure its market position, emphasizing the use of innovation tools and IPR protection.

INNOVATION AND
COMMERCIALIZATION

TABLE OF CONTENT
• Introduction
• Background of essence drinks
• Problem
• Commercial funnel
• Stages of commercial funnel
• Importance of commercial funnel
• Risk assessment
• Value creation through frugal creation
• Summary of new product
• Techniques for testing effectiveness of new
products of essence drinks
• Resources required for innovation
• Intellectual property rights
• Tools to protect IPR
• Conclusion
• References

INTRODUCTION
• The business case represents the essence drinks
background with the importance of commercial
funnel to find out solutions to introduce new product
in the UK.
• A brief summary of new product with techniques for
testing effectiveness of new product.
• Along with the description of the resources required
for market research and product development.
• At the end tools to protect intellectual property
rights are been highlighted.

BACKGROUND OF ESSENCE DRINKS
• Essence Drinks was founded by Mr. Akshay Kumar two years ago.
• He launched Essence Drinks with a mango lassi drink as a product into the
market of UK.
• The company with its distribution capability and introduction of innovative
formula of lassi drink achieve significant sale rise in initial first year.
• But the company faces the rapid decrease in sales in its third year because
of the rise in competition in UK.

PROBLEM
• Decrease in the sales of the mango
lassi drink a product of Essence
Drinks in UK due to increase in the
number of competition in UK.
• And a need for new and innovative
product development is seen to by
Essence Drinks to regain the market
share.

COMMERCIAL FUNNEL AND ITS
IMPORTANCE
• It is the process that make the potential
consumer of the product near to products that
are offered by the Essence Drinks.
• Series of marketing and promotional activities
are performed that helps the company to
increase the sales of the products.
• The levels of the commercial funnel might be
different for the organisations but the
traditional model have 4 main stages.

STAGES OF COMMERCIAL FUNNEL
Awareness
• At this stage Essence Drinks have to make its products discoverable by the potential customers..
Interest
• At this stage the customers are becoming aware about the Essence Drinks products.
Desire
• At this stage the customers now have the full information about the products that are offered by the
Essence Drinks.
Action
• At this stage the actual purchase of the products is take place.

IMPORTANCE OF COMMERCIAL FUNNEL
• It serves as a path that help Essence Drinks to attract the customers to buy
the product.
• The information gathered from the process of commercialisation helps to
devise marketing plans that will address the customers needs.
• It helps Essence Drinks to increase the chance of selling its products as
the stages of the funnel provide greater control to persuade customers.

RISK ASSESSMENT
• To effectively develop an innovative product and distribution of the
product into the market of UK.
• Essence Drinks will use the knowledge and resources that are available to
create strategies that will increase sales of the product and helps to
achieve competitive advantage in the market.
• The company is new to the market and have only limited products to offer.
Along-with the rise of competition in the market reduces the sales that had
achieved in the initial years.

VALUE CREATION THOUGH FRUGAL
INNOVATION
• Value to the customers can be delivered
with the application of frugal innovation
process and creation of quality products
at lower costs.
• Frugal innovation absorbs three types of
activities to generate value i.e. significant
reduction in cost, enhancement of core
functions and optimisation of
performance level.

SUMMARY OF NEW IDEA FOR NEW
PRODUCTS FOR ESSENCE DRINKS
• Essence Drinks has introduced mango lassi drink at its initial stage which
had generate a good demand for the product in UK.
• Akshay Kumar wants to introduce new product without removing lassi as
a main component.
• Essence Drinks will develop new flavours for the lassi.
• The main component will be lassi but the taste will be different from
mango lassi.

TECHNIQUES FOR TESTING EFFECTIVENESS OF
NEW PRODUCTS OF ESSENCE DRINKS
• Interactions with the customers: Essence Drinks by creation of a prototype of the
product and ask the customers to use it will help the company to gain key information
about the products.
• Sample offering: Essence Drinks by offering samples to its potential customers will
collect insights of the customers preference and tastes.
• Test advertisements: Essence Drinks create a test advert to provide information
about the product offering and analyse the behaviour of the customers.
• Conducting surveys: A product survey is a good method to obtain essential
information about the new product.